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Time value of money supports the comparison of cash flows recorded at different time period byans.b. Compounding all cash flows to a common point of timed. None of abovea. Discounting all cash flows to a common point of timec. Either (a) or (b) Previous Marked for Review Next

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Time value of money supports the comparison of cash flows recorded at different time period byans.b. Compounding all cash flows to a common point of timed. None of abovea. Discounting all cash flows to a common point of timec. Either (a) or (b) Previous Marked for Review Next

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Solution

The time value of money supports the comparison of cash flows recorded at different time periods by either discounting all cash flows to a common point of time (option a) or compounding all cash flows to a common point of time (option b). So, the correct answer is option c, either (a) or (b).

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